2001 (3) TMI 428 - AT - Central Excise

Tribunal upholds Commissioner's interpretation of Notification No. 45/82. Exemptions determined by clear language. /82

The Tribunal dismissed the Revenue's appeal, affirming the Commissioner's interpretation of Notification No. 45/82. The Tribunal emphasized that ... Notification No. 45/82-C.E. Issues:Interpretation of Notification No. 45/82 regarding exemption of duty on medicines supplied directly to government departments.Analysis:The appeal concerns the interpretation of Notification No. 45/82, which exempts patent or proprietary medicines supplied directly to government departments from excess excise duty. The grounds of appeal include challenges to the setting aside of an Order-in-Original and failure to consider the legislative history behind the issuance of the notification.The appellant argued that the Commissioner erred in setting aside the original order and failed to recognize the purpose of the notification, which was to provide concession to medicines supplied directly to government departments. The appellant highlighted the historical context of the notification, emphasizing the intent to exempt duty based on the contracted price.The appellant also contended that the Commissioner did not consider the classification provided by the Central Board of Excise and Customs, which allowed special reduced prices for medicines supplied to specific organizations without the need for statutory amendments. Additionally, the appellant argued that the notification wording should have explicitly stated the exemption based on the value of medicines after allowing an abatement of 85%.During the hearing, both sides presented their arguments. The Tribunal observed that the Commissioner correctly interpreted the notification, emphasizing the phrase 'excess of 15% of value.' The Tribunal noted that the Revenue did not contest this interpretation, and the grounds raised by the appellant were not substantial. The Tribunal emphasized that exemptions should be granted based on the plain terms of the notification and dismissed the Revenue's appeal accordingly.In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the Commissioner's interpretation of Notification No. 45/82 and emphasizing that exemptions should be granted based on the clear language of the notification.